inspiring philanthropy
Trustees’ Annual Report & Financial Statements 2016/17
Registered Charity No. 1094446 Registered Company No. 04530979
Contents Page
Welcome and Key Achievements 1
Trustees’ Report 3
Statement of Trustees’ Responsibilities 16
Independent Auditors’ Report 17
Financial Statements 19
Somerset Community Foundation
Welcome to our Annual Report for 2016/17
Somerset Community Foundation’s provisionally agreed our fourth mission is to be the catalyst for worth £25,000; inspirational philanthropy, providing a • produced our first ‘Vital Signs’ simpler and more effective way for donors report, highlighting the hidden to make a lasting difference in Somerset needs in our communities and the through our community investment and opportunities for philanthropy to thought leadership. respond; • received our largest one-off During 2016/17 we consolidated our donation from an individual; and position as the leading organisation to • grew our endowment to over £5m. deliver inspiring philanthropy in Somerset. We worked with more donors and funders Following the EDF Final Investment than ever before, and increased our Decision and the Government’s final investment into local voluntary approval for the Hinkley Point C project, organisations, charities and social we undertook considerable work to enterprises. prepare for the launch of the EDF Energy Community Fund in 2017/18. We also In particular we: began negotiations with the Access Foundation to diversify our social • awarded grants worth £516,234 to investment programme with almost 208 local charities and voluntary £0.5m of grant funding, which was agreed organisations, as well as to this summer. individuals, from our ‘regular’ programmes; The importance of the local voluntary • awarded the final £31,035 from sector has become increasingly apparent, the Somerset Flood Relief Fund; and we are seeing many organisations • agreed our third loan from the experience increasing demands for their Somerset Social Enterprise Fund, services whilst simultaneously finding it funded by Somerset County harder to secure the essential funding Council, worth £61,000 and they need.
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This is not a sustainable position for the We would also like to thank David Jenkins sector or for society at large. The and Andy Palmer who both stepped down Foundation will continue to have a as Trustees and to Victoria Malcolm who significant role in supporting community- left the Foundation’s executive team. led ideas and initiatives to tackle issues of disadvantage and inequality. We will continue to do everything we can to grow Jane Barrie OBE DL Justin Sargent the level of funding we can offer to the Chairman Chief Executive sector, and we are also developing new strategies for using our funds and 25 September 2017 expertise to help strengthen the sector.
Looking ahead, in the immediate future, our goal is to sustain grants from our regular programmes at a minimum £500k per annum and to grow towards a core programme of more than £750k by 2020.
Underpinning this we will continue to inspire new philanthropy, focussing on building momentum towards our goal of managing a £10m endowment by 2020.
Alongside these goals we will be launching the EDF Energy Community Fund to invest in communities that are affected by the Hinkley Point C development. This multi- million-pound fund offers the opportunity to transform the quality of life and well- being of many local communities and we look forward to working with our partners and stakeholders to create a legacy for Somerset.
Finally, we would like to thank and pay tribute to our Trustees, staff and volunteers for their commitment and contribution to the Foundation. We welcome John Lyon and Lucy Nelson as new Trustees, and we welcome back Sue Wheeler to the executive team. We also welcome Val Bishop to the Senior Leadership Team.
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Somerset Community Foundation
Trustees’ Report Public Benefit
The Trustees of Somerset Community The Trustees confirm they have complied Foundation (SCF) present their report and with their duty in Section 17 of the audited financial statements for the year Charities Act 2011: all our activities are ended 31st March 2017. This report also undertaken to further our charitable serves as the Directors’ report as required objectives for the benefit of the public. by Section 419(2) of the Companies Act We meet our objectives through grants 2006. programmes and other initiatives that benefit the people of Somerset and Reference and administrative details beyond.
SCF is a registered private company, Our Vision and Mission limited by guarantee (no.04530979) and a registered charity (no.1094446) governed Our vision for Somerset is a county of by its Memorandum and Articles of vibrant and inclusive communities where Association. voluntary organisations and social enterprises thrive, transforming and The Directors of SCF are also its Trustees enhancing the lives of the most for the purposes of charity law and are disadvantaged people. referred to as ‘Trustees’ throughout this report. Details of Trustees, the President, Our mission is to be the catalyst for Vice-Presidents, staff and external inspirational philanthropy, providing a advisors are provided on page 14 and 15. simpler and more effective way for donors to make a lasting difference in Somerset Objectives through our community investment and thought leadership. The charitable objects of SCF are to: In March 2016, the SCF Board adopted a • promote charitable purposes for the new strategy for the period to March benefit of the community in the 2020, underlining our commitment to area served by Somerset County inspiring philanthropy, in terms of both: Council, and in particular the relief of poverty and advancement of • inspiring more local philanthropy education; and to support local communities • promote other charitable purposes throughout Somerset; and in the United Kingdom and • delivering inspirational elsewhere, which are in the opinion philanthropy through grants, social of the Trustees, beneficial to the investment and leadership. community with a preference for those in the area of benefit. By 2020 we aim to hold an endowment worth £10m and to invest at least £750k
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annually in our communities through Endowment Fund grants and social investment. During 2016/17 we added £279,203 To achieve this, we set ourselves three (2016: £329,020) in new donations to our strategic aims. endowment fund. This included our largest single donation from an individual Strategic Aim 1: Building more and a trust transfer. When combined with inspirational philanthropy significant capital gains to the fund, these donations helped our overall endowment We have a unique role in Somerset, to grow above £5m for the first time. enabling donors and funders to create Endowment Fund 2013-2017 their own ‘named funds’ within SCF for causes and places they care most about. 5.5 We work closely with our fund-holders to maximise the impact of their giving in 5 response to the most pressing needs in Somerset today. In the light of sustained 4.5 and growing pressure on our local voluntary sector organisations, we are 4 determined to continue to grow to meet MILLIONS £ that need today and far into the future. 3.5 As awareness of the Foundation increases, we continue to attract new 3 2013 2014 2015 2016 2017 funds to support our local communities. Whilst growth in the endowment needs to be higher, we are encouraged by the The average value of an endowment interest shown in the Foundation from a named fund is now £104,935. diverse range of donors and funders. Flow-through Funds Encouragingly, we are increasingly seeing interest from local public-sector bodies in Whilst our long-term goal is to build a working with us. Our focus remains on major endowment for Somerset, we philanthropy, but we welcome continue to take a flexible approach that opportunities to blend funding together puts donors and funders first. to increase its effectiveness. We therefore offer donors and funders During the year, we managed 83 ‘named the option to create ‘flow-through’ funds funds’ (2015/16: 71). which ensure donations are invested in our communities immediately. During the
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year we attracted 6 new flow-through can increase our capacity overall to grow funds, worth £86,195. philanthropy in Somerset.
Surviving Winter Strategic Aim 2: Increasing the impact of our community Our award-winning Surviving Winter programme continues to thrive. Unlike investment other funds under our management it is supported by over 350 donors each year, The focus of our charitable work is who donate an equivalent amount to their through community investment, in the Winter Fuel Payment. form of grants and loans, and particularly to local organisations creating positive This year the appeal raised £78,486 change in our communities. (2015/16: £58,432), helping over 400 older people households stay warm, We aim to increase our impact by raising active and better connected through the the overall amount we invest in our winter period. communities and in the way we deliver that funding, so that every pound makes a Looking ahead greater difference.
Interest in philanthropy continues to grow Investing in local voluntary across the UK, and our ability to help organisations and social enterprises donors apply their philanthropic interests in their local area remains important, not During 2016/17 the overall investment we least because of the stresses that the made into our communities was worth organisations we fund are under to £752,329 (2015/16: £756,911) including continue funding their essential work. payments made through www.localgiving.com and social It is not clear how major national and investments made from the Somerset international challenges, particularly Social Enterprise Fund. Of this, Brexit, will affect donor confidence in the short- and medium-term, but • 69% (2015/16: 65%) was delivered undoubtedly philanthropy will continue to from our regular grants play an important role in society. programmes; and • 8% (2015/16: 6%) was social We will, therefore, continue to work with investment through the Somerset donors and funders to build more support Social Enterprise Fund; for Somerset’s voluntary sector and social enterprises. In particular, during 2017/18, Overall, we provided funding to 208 we will focus on raising our profile with organisations (2015/16: 233). more professional advisors across Somerset and we are exploring how we We particularly have a role to support smaller organisations that operate at the
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heart of local communities. The typical in West Somerset access personal organisation we fund: development opportunities; • 5 Somerset Flood Relief grants to • helps 100 people each year; 3 households affected by the 2014 • relies on 10 volunteers; and floods; • has an annual income of £36,000 • 3 grants from the Norah Cook Hurle Trust to nurses undertaking During the year, we awarded some of the specialist training; and largest grants we have ever awarded from • 1 grant from the Solutions for an the ‘TYCC Fund’, created by Taunton Ageing Society fund to help an Deane Borough Council from the proceeds individual start a social enterprise. of the sale of the former Taunton Youth Community Centre. Ten organisations Impact received capital grants, totalling £262,333, with one also receiving a loan from the At the heart of our work is a deep belief in Somerset Social Enterprise Fund. the value of local Voluntary, Community and Social Enterprise (VCSE) organisations Finally, we made our third social as the drivers of positive change in our investment from the Somerset Social communities and deliverers of early Enterprise Fund, supporting Compass intervention when people need a helping Disability with a loan and grant package hand. worth £71k, to establish a new well-being centre for people with disabilities in We continue to focus on providing small Taunton. grants with additional support to these organisations through processes that Investing in people minimise their administrative burden whilst ensuring we have sufficient In recent years, we have started to information to make good decisions. manage programmes that support individuals directly. • 60% of our grants reached organisations running on less than In 2016/17, we awarded £50,640 to 46 £50k a year. individuals as follows: • 94% of applicants rated our application process as good or • 31 grants from the Eagle House excellent. Fund to young people leaving care to access further and higher We recognise that issues of disadvantage, education and other training inequality and poverty can be found in opportunities; every community, and are often hidden • 6 grants from the West Somerset within seemingly affluent areas. It is Youth Trust helping young people therefore important that we do everything we can to reach all areas of
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Somerset with our funding, allowing for primary outcome we are seeking for each the priorities of our funders. grant we awarded.
Distribution of grants by Impact Category 2016/17 Distribution of grants across Somerset during 2016/17
7% 22% 7% 27%
44%
16% 31%
9% 5%
13% 19% Reduce isolation and disadvantage Mendip Sedgemoor South Somerset Taunton Deane Create stronger communities West Somerset Out of County Connect people with arts, culture and the environment However, we also recognise that there are Improve education and skills a small number of neighbourhoods that are considered to be amongst the most Enhance health and well-being deprived in England within our local towns. Around 7% of our population live in these areas, and just under 10% of our In respect of who has benefitted from our grants supported projects that are based funding, again, many projects will help a solely in these areas, with many more wide variety of people. However, we can operating in these areas. report that the majority of our funding helped: In a similar vein, the nature of the issues we seek to address can be found • children and young people (39%); throughout the county. • older people (24%); and • people with mental illnesses (8%) Most of the organisations we fund have multiple impacts, so it is difficult to reflect Looking ahead precisely the level of funding we are awarding to different kinds of outcomes Towards the end of the year we but the pie chart below is based on the undertook a comprehensive review of our
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grant-making and have updated our increasing the number of investments we strategy. make, starting with a minimum of four in 2017/18 and 25 by 2021. Whilst the funds that we currently manage will continue to focus on children Finally, in the first quarter of 2017/18 we and young people, older people and received the first instalment of the mental health projects, we aim to: £1.23m EDF Energy Community Fund enabling us to press ahead with setting up • continue funding small charities our Awards Panel, commission research and voluntary groups with small into local community priorities in the grants for essential project work, areas most affected by Hinkley Point C, capital items and core costs; recruit staff and establish an office base in • fund more grassroots community- Bridgwater, all with the aim of awarding led initiatives in the most deprived our first grants in early 2018. neighbourhoods, with more flexible and multi-year grants; and Strategic Aim 3: Growing our • focus our support for larger local Community Leadership Role organisations on organisational development and performance Our leadership role is based on our ability improvement. to convene and connect people from different backgrounds and the knowledge Our average grant has remained largely and insights we collect through our unchanged for a number of years, at support for VCSE organisations. around £2,000. This year we aim to modestly increase our average grant to Vital Signs £2,500. In 2015/16, we joined a growing number We will also be investing more time in of UK Community Foundations producing reaching out to the voluntary sector. Local a local ‘Vital Signs’ report. Vital Signs organisations are under increasing provides a digest of issues facing our pressure for demand for their services communities and, in particular, focuses on whilst income levels are, at best, static. the ways in which philanthropy can help We therefore need to do more to help find and fund effective local solutions. organisations that we feel we can really assist, and especially aid new and The report revealed the hidden need that inexperienced groups access our support. exists within our county, from mental health in young people to loneliness New funding secured through the Access amongst the elderly, but also highlighted Foundation for Social Investment in many of the ways in which people’s lives August 2017 means that we will be able to can be improved by community-led offer an enhanced social investment action. It combined statistical evidence package. We will be re-branding and re- launching the fund with the aim of
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with insights from community hand the project over to another consultations. organisation to grow and expand.
The report was widely distributed and Looking ahead well received from diverse audiences, and we are aware that other organisations are We will continue to lead the VCSE using its finding to support their own Strategic Forum with a particular goal to funding bids. develop a joined-up approach to tackling loneliness across the VCSE and public Strategic VCSE Forum sector. We are also exploring the potential of a networking event for VCSE sector This was the second year we hosted this leaders. project, which aims to help the local public sector connect and communicate We also aim to begin the transition of more easily with the VCSE sector. In doing Raising Aspirations to another so we hope that it will create more organisation to run, as well as find other opportunities for our local VCSE opportunities to share the lessons organisations to work more closely with learned. the public sector. We are very grateful to Somerset County Council for their support Most importantly, though, we will and to the NHS Clinical Commissioning reintroduce our Below the Radar Group for joining the partners in the latter programme connecting donors, other half of the year. stakeholders and representatives from VCSE organisations to discuss issues facing There were four Strategic Forum meetings our communities and the sector at large. during the year, attracting senior representation from organisations Governance working across sectors, themes and geographies. We also organised the VCSE The Board of Trustees met in full four Leaders Conference, with guest speakers times during the year, providing effective on collaborations and leadership. leadership, policy and fiscal oversight for the charity and supporting the CEO and Raising Aspirations his team.
We continued to support our pilot Raising In addition, an Away-Day was held in Aspirations mentoring programme in December where the Board discussed Street, Taunton and Wellington, recruiting how the Foundation’s Community and training over 30 new mentors. Investment programmes should evolve over the next four years in response to As we enter into the final stages of the the external environment. programme we are beginning to share our experiences and put together funding to The Board is supported by five committees.
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1. The Finance and Governance During the year we also convened an Committee meets between Board informal Philanthropy Committee to guide meetings to discuss key issues, the development of our endowment review management accounts and development programme. We will risk, and consider the on-going formally constitute this committee during development of the Board and the 2017/18. organisation. In addition, the EDF Energy Community 2. The Community Impact Committee Fund Awards Panel has been constituted oversees the development and in 2017/18. monitors the implementation of the Foundation’s charitable work. During the year the committee has Quality Accreditation concentrated on developing a Since 2007, Community Foundations have more focused and outcome-driven been given the opportunity to apply for approach to grant-making and ‘Quality Accreditation’ (QA) to standards explored the potential role for SCF through a scheme that was endorsed by to establish more charitable loan the Charity Commission. programmes. 3. The Grants Committee, which The standards are independently assessed includes co-opted volunteers, and reviewed every three years. They assesses and determines the cover governance, financial management, majority of our grants, meet four donor development, grant-making and times a year. communications. 4. The Loans Committee, which also includes co-opted volunteers, A comprehensive submission to the fourth considers applications to the SSEF QA process was made at the end of the and advises SCF on its policies year. In early August 2017, it was relating to loans. confirmed that we had successfully 5. The ‘Co-Investment Committee’ retained our QA status. oversees and reviews the implementation and performance Board Development of our shared investment policy for the endowment investment funds During the year we sadly said farewell to managed by Smith & Williamson David Jenkins and Andrew Palmer, both and Ruffer LLP alongside long-serving Trustees who have given 14 representatives from the Wiltshire years of service to the Foundation. We are Community Foundation, very grateful to them both for their hard Bournemouth, Dorset and Poole work and dedication to SCF during a long Community Foundation and Devon period of transition. Community Foundation. We welcome Lucy Nelson and John Lyon who joined the Board as new Trustees.
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Lucy will strengthen our philanthropy The arrangements put in place during development programmes and John will 2013 have continued to provide us with chair the EDF Energy Community Fund an efficient, accurate and cost-effective Awards Panel. approach to financial management in an increasingly complex organisation, Chris Bishop led an internal Board review. providing accurate and timely This showed good progress has been management information for the CEO and made, particularly in the level of Board. communication between the Executive and the Board, and clarity over the UK Community Foundations Foundation’s revised mission. It was noted, however, that Trustees would As an active member of UKCF we welcome more access to specific training contribute to and benefit from advice and and development opportunities. support on a wide range of governance and programme issues. A skills audit showed the Board has strengths in management and HR, and In particular, our CEO has participated in a professional services. It was recognised working group reviewing the best practice that we need to strengthen in co-investment arrangements to guide representation from the VCSE sector and other Foundation’s in the network. philanthropic strategy, specifications that will be included in the job description for The network as a whole holds over £500m new Trustees during open a recruitment of endowment funds and distributed round later this year. £65m in grants in the past twelve months.
Induction of new Trustees includes Financial Review meetings with the Chairman and Chief Executive to clarify the Foundation's The Board agreed to set a deficit expectations of new Trustees, as well as operating budget at the start of the year their specific role. They are given copies to invest in the long-term development of of Charity Commission guidance for new the Foundation. Trustees, the Foundation's Memorandum and Articles of Association, the most Overall our total income was £1,243,496 recent annual report and financial (2015/16: £1,443,641) including £279,203 statements and the Foundation's (2015/16: £329,020) held as endowment. policies. They also sign a ‘Trustee declaration' which encompasses a Code of Our total expenditure was £1,043,865 Conduct. They will also receive further (2015/16: £1,075,073). orientation depending on their role (e.g. fund development, grant-making). Charitable Activities
Financial Management Expenditure on charitable activities fell slightly to £933,839 (2015/16: £959,918)
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reflecting the end of the delivery of the gains, dividends or interest) for core costs Somerset Flood Relief Fund. and grants programmes, with a targeted total return of RPI +4%. This target is long- Grant-making from our ‘regular’ term and market volatility means some programmes was worth £516,234 years will underperform and others will (2015/16: £488,633) with associated outperform. direct support costs underpinning our grant-making programmes £117,616, 22% The upturn in the markets in the latter (2015/16: £95,416, 19.5%). half of 2016/17 has meant that the total return for the year was 16.19% (2015/16: In addition, £273,102 (2015/16: £354,135) 1.78%). Over the past 3 years, the average was spent on our other charitable total return has been 8.32%. programmes, including the Somerset Flood relief fund grants and support costs Our investment managers have delegated for the Somerset Social Enterprise Loan discretionary powers of investment, as Fund. detailed in their investment management agreement with us. The Trustees may Generating Funds make decisions to realise capital from growth from time to time to support the Expenditure on generating funds was grants programmes. £110,026 (2015/16: £115,155). For every pound spent on generating funds over the Restricted Funds past five years, £12.75 has been raised (2015/16: £13.14). The majority of our restricted funds support our charitable work either as Endowment ‘flow-through’ funds, endowment income or direct project support. The Endowment balances at the year-end were £5,050,237 (2015/16: £4,233,835). There was a small net movement of (£19,144) (2015/16: £43,629) during the Central to the Foundation's mission is the year, leaving a strong balance of development of endowment funds, £1,847,311 (2015/16: £1,866,455) to providing sustainable support for local continue investing in and supporting our communities in the long term, whilst local communities. This includes the tackling need and deprivation through balance of the Somerset Social Enterprise appropriate, targeted financial support. Fund. The investment objective is to maximize the "total return" over the medium and Unrestricted Funds long term, without taking undue risk. Our unrestricted funds cover most of the The aim is to maintain the capital value of costs of running, growing and developing the fund, allowing for inflation, and to the Foundation to sustain our impact in generate a return (whether from capital Somerset.
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The unrestricted funds (including Our budget for these operational costs in designated funds) at the end of the year 2016/17 is £249,131, and our free saw a slight increase of £6,801 (2015/16: reserves represent 5.2 months against this £110,346). budget. During the year, the Board will review this position and consider investing The unrestricted funds include four if further development of the Foundation. designated funds for Yeoman House, maintenance of Yeoman House, support With the continuing strong financial to young volunteers and a research fund performance, a healthy reserves position for Raising Aspirations. These designated and medium to long-term sources of funds totalled £156,318 (2015/16: income, the Trustees consider the £158,863) Foundation to be a going concern.
Our free reserves (unrestricted balances Remuneration and Pensions Policy excluding designated funds) at year end were £152,009 (2015/16: £142,871). All Trustees give their time freely and no Trustee received any remuneration for Reserves and Going Concern fulfilling their duties during the year.
The Trustees’ reserves policy is to retain a The pay of senior staff is reviewed minimum balance of free reserves to annually and normally increased in cover 6 months operational costs. The accordance with average earnings. In rationale behind this is to both protect doing so, the Trustees also benchmark our core capacity in the event of a short- senior staff pay levels against similar term fall in income (for example between Community Foundations in the UK the end of a large grants programmes and network and, subject to financial the start of another) and to provide the performance of the charity, endeavour to flexibility to invest in development ensure pay is competitive and reflects activities. performance.
In 2015/16, the basis upon which Trustees SCF offers up to 3% contribution to determine the core costs of the employees’ pensions on a match funding Foundation was revised and now excludes basis and began participation in auto- project costs supported by specific enrolment schemes during the year restricted grants where we employ self- through NEST. employed Associates. Our calculation of core costs is, therefore, focused on Risk Management sustaining the core team of staff to deliver a minimum £500k grants programme and The Finance and Governance Committee continue to grow the Foundation, and maintains a Risk Register through which essential infrastructure necessary to the major risks to which the Foundation is sustain the organisation. exposed are managed across all areas of
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activity. These are reported to the Board Board of Trustees at quarterly meetings. The serving Trustees on the date of The major risk that continues to challenge approval of this report were: the Foundation is to sustain sufficient income to cover the Foundation’s core Chairman costs. Whilst SCF has a strong track record Jane Barrie OBE DL (FG, LC, IC) in covering its core costs and gradually Vice Chairman growing a reserve, our long-term efforts Martin Kitchen OBE (FG, CI, GC, EDF) to grow the endowment and develop Treasurer sustainable programmes will help to Paul Hake (FG) manage this risk in the future. Chris Bishop (FG, LC, EDF) Other key risk areas relate to clarity and Richard Lloyd consistency of message and branding of Jane Lock (GC, CI) the Foundation, and the way we engage John Lyon CB (FG, EDF) our donors. The new strategy addresses Lucy Nelson (PC) both of these issues to ensure that Judith North (CI, GC) everyone involved in the Foundation is Barry O’Leary (FG, IC) clear about our mission, and more staff Karen Pearson resource is being allocated to major donor Jan Ross MBE (CI, GC) engagement. Sarah Wakefield (LC) Tim Walker Status Other Trustees serving during the year to The Foundation is registered as a charity, 31 March 2017 were: number 1094446 and as a private company in the United Kingdom limited David Jenkins by guarantee, number 04530979. Andrew Palmer
Registered Address CI - Community Impact Committee EDF – EDF Energy Awards Panel Yeoman House, Bath and West (constituted in 2016/17) Showground, Shepton Mallet, Somerset FG - Finance and Governance Committee BA4 6QN. GC – Grants Committee LC – Loans Committee IC - Co-Investment Committee
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Patron Bankers Lady Gass DCVO JP CAFBank Ltd, 25 Kings Hill Avenue, West Malling, Kent ME19 4JQ President HM Lord Lieutenant of Somerset, Annie Investment Managers Maw Smith and Williamson Portland Place, Portwall Lane, Bristol BS1 6NA Vice-Presidents
Lord Cameron of Dillington DL Ruffer LLP Richard Case CBE DL 80 Victoria Street, John Cullum DL London SW1E 5JL Michael Fiennes
The Rt Rev’d Peter Hancock, Bishop of Brewin Dolphin Ltd Bath and Wells Ashford House, Blackbrook Park Avenue, Richard Hickmet (High Sheriff of Somerset Taunton, Somerset TA1 2PX 2017/18)
Cllr Christine Lawrence (Chairman of CCLA Somerset County Council) Senator House, 85 Queen Victoria Street, Maureen Whitmore London EC4V 4ET Peter Wyman CBE DL
Angela Yeoman OBE
Principal Officers Justin Sargent (Chief Executive Officer, Company Secretary) Mary Hancock (Operations Director) Val Bishop (Programmes Director)
Principal Professional Advisors
Registered Auditors Old Mill Audit LLP Chartered Accountants and Statutory Auditor, Bishopbrook House, Cathedral Avenue, Wells BA5 1FD
Legal Advisors Clarke Willmott LLP Blackbrook Gate, Blackbrook Park Avenue, Taunton, Somerset TA1 2PG
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Statement of Trustees’ inappropriate to presume that the Foundation will continue in Responsibilities operation. The Trustees, who are also directors of The Trustees are also responsible for Somerset Community Foundation (Limited maintaining proper accounting records by Guarantee) for the purposes of which disclose with reasonable accuracy company law, are responsible for at any time the financial position of the preparing the Annual Report of the Foundation and enable them to ensure Trustees (incorporating the strategic that the financial statements comply with report and the directors’ report) and the the Companies Act 2006. They are also financial statements in accordance with responsible for safeguarding the assets of applicable law and United Kingdom the Foundation and hence for taking reasonable steps for the prevention and Accounting Standards, including Financial detection of fraud and other irregularities. Reporting Standard 102: The Financial Reporting Standard applicable in the UK In so far as the Trustees are aware: and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). • there is no relevant audit information of which the Company law requires the Trustees to Foundation's auditor is unaware; prepare financial statements for each and financial year which give a true and fair • the Trustees have taken all steps view of the state of affairs of the that they ought to have taken to Foundation and of the income and make themselves aware of any relevant audit information and to expenditure, of the Foundation, for that establish that the auditor is aware of period. In preparing these financial that information. statements, the Trustees are required to: The Trustees are responsible for the • select suitable accounting policies maintenance and integrity of the and then apply them consistently; corporate and financial information • observe the methods and principles included on the Foundation’s website. in the Charities SORP; Legislation in the United Kingdom • make judgements and accounting governing the preparation and dissemination of financial statements may estimates that are reasonable and differ from legislation in other prudent; jurisdictions. • state whether applicable United Kingdom Accounting Standards have Approved by the Trustees on been followed, subject to any 25 September 2017 and signed on their material departures disclosed and behalf by explained in the financial statements; and ...... • prepare the financial statements on the going concern basis unless it is Jane Barrie OBE DL (Chair of Trustees)
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Independent Auditors’ Report to the Members of Somerset Community Foundation (Limited by Guarantee)
We have audited the financial statements of Somerset Community Foundation (Limited by Guarantee) for the year ended 31 March 2017 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Foundation's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Foundation's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Foundation and the Foundation's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Trustees and Auditor
As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the directors of the Foundation for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.
Scope of the Audit of the Financial Statements
A description of the scope of an audit of financial statements is provided on the FRC's website at www.frc.org.uk/apb/scope/private.cfm
Opinion on Financial Statements
In our opinion, the financial statements:
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• give a true and fair view of the state of the Foundation's affairs as at 31 March 2017 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; and • have been prepared in accordance with the Companies Act 2006.
Opinion on Other Matter Prescribed by the Companies Act 2006
In our opinion, the information given in the Trustees' Annual Report (which incorporates the strategic report and directors’ report required by company law) for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to Report by Exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us: • the financial statements are not in agreement with the accounting records and returns; • certain disclosures of Trustees' remuneration specified by law are not made; • we have not received all the information and explanations we require for our audit; or
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Dated: TL Lerwill (Senior Statutory Auditor) For and on behalf of Old Mill Audit LLP Chartered Accountants and Statutory Auditor Bishopbrook House Cathedral Avenue Wells, Somerset BA5 1FD
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Somerset Community Foundation
Statement of Financial Activities for the Year Ended 31 March 2017 Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total Funds Funds Funds 2017 Funds Funds Funds 2016
Income from: Note £ £ £ £ £ £ £ £ Donations and Legacies 3 134,772 396,543 279,203 810,518 131,887 461,233 329,020 922,140 Charitable Activities 6 18 276,067 - 276,085 19,140 348,178 - 367,318 Other Trading Activities 13,255 - - 13,255 11,914 - - 11,914 Investments 4 5,363 138,275 - 143,638 8,018 134,251 - 142,269 Total 153,408 810,885 279,203 1,243,496 170,959 943,662 329,020 1,443,641 Expenditure on: Raising Funds 5 76,921 22,618 10,487 110,026 73,703 26,343 15,109 115,155 Charitable Activities 6,19 140,676 793,163 - 933,839 142,504 817,414 - 959,918 Total 217,597 815,781 10,487 1,043,865 216,207 843,757 15,109 1,075,073 Net Income Before Gains and Losses on Investment 7 (64,189) (4,896) 268,716 199,631 (45,248) 99,905 313,911 368,568
Net Gains/(Losses) on Investment 10 4,182 3,284 596,962 604,428 (6,063) (856) (211,949) (218,868)
Net (Expenditure)/Income (60,007) (1,612) 865,678 804,059 (51,311) 99,049 101,962 149,700 Transfers Between Funds 17 66,808 (17,532) (49,276) - 161,657 (55,420) (106,237) - Net Movement in Funds 6,801 (19,144) 816,402 804,059 110,346 43,629 (4,275) 149,700
Reconciliation of Funds Total Funds Brought Forward 14 310,851 1,866,455 4,233,835 6,411,141 200,505 1,822,826 4,238,110 6,261,441 Total Funds Carried Forward 14 317,652 1,847,311 5,050,237 7,215,200 310,851 1,866,455 4,233,835 6,411,141
Trustees’ Report and Financial Statements 2016/17 19
Somerset Community Foundation
Summary Income and Expenditure Account for the Year Ended 31 March 2017
2017 2016 £ £
Income 820,655 972,352 Gains/(Losses) on Investments 7,466 (6,919) Interest and Investment Income 143,638 142,269 Gross Income in the Reporting Period 971,759 1,107,702 Expenditure (1,026,341) (1,053,143) Depreciation (7,037) (6,821) Total Expenditure in the Reporting Period (1,033,378) (1,059,964) Net Income Before Transfers (61,619) 47,738 Transfers 49,276 106,237 Net (Expenditure)/Income for the Financial Year (12,343) 153,975
The summary income and expenditure account is derived from the statement of financial activities on page 19 (excluding endowment fund incoming resources and resources expended) which, together with the notes to the financial statements on pages 23 to 46 provides full information on the movements during the year on all the funds. Excluded from the total net incoming resources in the statement of financial activities to arrive at the above figure is £279,203 (2015/16: £329,020) of endowment income and £10,487 (2015/16: £15,109) of endowment expenses.
All income and expenditure derives from continuing operations.
The notes on pages 23 to 46 form an integral part of these financial statements.
Trustees’ Report and Financial Statements 2016/17 20
Somerset Community Foundation
Balance Sheet as at 31 March 2017
2017 2016 Notes £ £
Fixed Assets
Investments 10 5,256,188 4,168,474 Tangible Assets 11 110,985 116,757
Total Fixed Assets 5,367,173 4,285,231
Current Assets Debtors – Amounts Falling Due After More Than One Year 12 87,823 34,991 Debtors – Amounts Falling Due Within One Year 69,233 625,341 Cash at Bank and in Hand 1,762,268 1,559,003
Total Current Assets 1,919,324 2,219,335
Creditors: Amounts Falling Due Within One Year 13 (71,297) (93,425)
Net Current Assets 1,848,027 2,125,910
Total Net Assets 7,215,200 6,411,141
The Funds of the Charity
Unrestricted Funds 14 161,334 151,988
Designated Funds 14 156,318 158,863
Restricted Funds 14 1,847,311 1,866,455 Expendable Endowment Funds 14 5,050,237 4,233,835
Total Charity Funds 7,215,200 6,411,141
Approved by the Trustees on 25 September 2017 and signed on their behalf by
...... Jane Barrie OBE DL ...... Paul Hake FCCA
Registered Company No: 04530979.
The notes on pages 23 to 46 form an integral part of these financial statements.
Trustees’ Report and Financial Statements 2016/17 21
Somerset Community Foundation
Statement of Cash Flows for the Year Ended 31 March 2017
Note Total Total 2017 2016 £ Cash Flows from Operating Activities:
Net Cash Provided by/(Used in) Operating Activities 18 529,100 (366,235)
Cash Flows from Investing Activities Dividends and Interest from Investments 143,638 142,269 Purchase of Equipment (1,266) - Proceeds from Sale of Investments 1,532,969 821,987 Investment Cash Movement (161,479) 26,279 Purchase of Investments (1,839,697) (761,429)
Net Cash (Used in)/Provided by Investing Activities (325,835) 229,106
Change in Cash and Cash Equivalents in the Reporting Period 203,265 (137,129)
Cash and Cash Equivalents at the Beginning of the Reporting 1,559,003 1,696,132 Period
Cash and Cash Equivalents at the End of the Reporting Period 18 1,762,268 1,559,003
Trustees’ Report and Financial Statements 2016/17 22
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
1. Legal status of the Foundation
The Foundation is a registered charity and a registered company, limited by guarantee, and has no share capital. The guarantors are the members whose liability in the event of a winding-up is limited to £1 each. There were 15 members at the balance sheet date (2015/16: 14).
2. Accounting policies
Accounting Convention
These accounts have been prepared in accordance with FRS 102 " The Financial Reporting Standard applicable in the UK and Republic or Ireland" ("FRS 102"), "Accounting and Reporting by Charities" the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are round to the nearest £.
The accounts have been prepared on the historical cost convention modified to include the revaluation of investment assets and the principal accounting policies are set out below.
Going Concern
At the time of approving the accounts, the Trustees have a reasonable expectation that the Somerset Community Foundation has adequate resources to continue in operational service for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in the preparation of the accounts.
Trustees’ Report and Financial Statements 2016/17 23
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Incoming Resources
Income is recognised when the Foundation has entitlement to the funds, any performance conditions attached to the item of income has been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants is recognised in the same way unless it is deferred.
Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount if not known, the legacy is treated as a contingent asset.
Donated professional services and donated facilities are recognised as income when the Foundation has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Foundation of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general time of the volunteers is not recognised and refer to the Trustees’ annual report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the Foundation which is the amount the Foundation would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Resources Expended
Expenditure is accounted for on an accruals basis and has been included under expenses categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those costs incurred directly in support of expenditure on the objects of the Foundation and include project management carried out the Foundation's office. Governance costs are those incurred in connection with the administration of the Foundation and compliance with constitutional and statutory requirements.
Costs of charitable activities comprise grants payable and support costs, payments to charities registered on localgiving.com and work associated with the Raising Aspirations mentoring programme. Grants payable are included in resources expended once the grant application has been approved by the grants committee and this has been communicated to the grant recipient, except in those cases where the offer is conditional, such grants being recognised as expenditure when the
Trustees’ Report and Financial Statements 2016/17 24
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Resources Expended (Continued) conditions attached are fulfilled. Grants offered subject to conditions which have not been met at the yearend are noted as a commitment, but not accrued as expenditure.
Fixed Assets and Depreciation
All capital assets with a value of less than £1,000 are expensed in the statement of financial activities. Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Leasehold Property and Improvements - 25 years (straight line) Furniture and Equipment - 6 years (straight line)
Investments
Listed investments are included in the balance sheet at their market value at the balance sheet date. Realised and unrealised gains and losses on investments are included in the statement of financial activities in the year in which they arise. Investment income is credited to income on an accruals basis.
Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short- term liquid assets.
Financial Instruments
The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised when the Foundation becomes party to the contractual provisions of the instrument.
Financial assets are offset, with the net amounts presented in the accounts when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic Financial Assets Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction, is measured at the present value of the future receipts discounted at a market rate of interest.
Trustees’ Report and Financial Statements 2016/17 25
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Financial Instruments (continued)
Basic Financial Liabilities Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. Trade payables are recognised initially at transaction price and subsequently measure at amortised cost using the effective interest method.
Pension Costs
The Foundation contributes to a defined contribution pension scheme, the assets of which are held separately from those of the Foundation. The scheme is independently administered. Contributions are charged in the statement of financial activities as they fall due in accordance with the scheme rules.
Operating Lease Agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Fund Accounting
Funds held by the Foundation are either:
• Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
• Designated funds – these are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects. • Restricted funds – these are funds that can only be used for particular, restricted purposes within the objects of the Foundation. Restrictions arise when specified by the donor or when funds are raised for particular, restricted purposes.
Trustees’ Report and Financial Statements 2016/17 26
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Fund Accounting (Continued) • Expendable Endowment Funds – these are funds whose assets provide a long-term source of income to support the Foundation’s objects. Individual donations to the endowment fund may be unrestricted or restricted if the donor has specified how the income arising should be spent. The Trustees have the power to spend the capital if they so determine.
In many cases and with the prior agreement of the donor one donation may be divided between various funds. Further explanation of the nature and purpose of each fund is included in note 14 to the financial statements.
Tax Status
The Foundation is exempt from any taxation with the exception of Value Added Tax.
Loans Advanced
One of the objectives of the Foundation is to support existing and emerging enterprises through the making of grants and loans. Loans receivable by the Foundation are recognised when funds are advanced to borrowers. Amounts due for repayment after more than one year from the balance sheet date are shown as long-term debtors within current assets.
Fees charged in respect of loan applications are recognised in full when funds are advance to borrowers. Interest receivable on loans is recognised on an accruals basis when funds are repaid and not when loans are advanced. Fees and interest and deemed to be restricted income, to be utilised in the making of future loans in accordance with the fund objectives.
3. Donations and Legacies
2017 2016 £ £ Field House Trust 75,250 75,250 T & PJ (Milborne Port) Trust - 303,722 The Richard Huish Foundation 95,564 - Individual Endowment Donation1 199,572 - Other Donations and Grants (< £75,000) 440,132 543,168 810,518 922,140
Assets and Services Gifted in Kind 3,800 6,000
1 Donor wishes to remain anonymous
Trustees’ Report and Financial Statements 2016/17 27
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Donations and Legacies (Continued)
Gifts in Kind:
We are grateful to the following for their support during the year: Nicholas Gould, Chris Pawson, Albert Goodman, Andelli Design, Clark Willmott, and the Swan Hotel.
4. Investment Income
2017 2016 £ £
Dividends on Equities and Fixed Interest Securities 142,132 140,064 Interest on Cash Deposits 1,506 2,205
143,638 142,269
5. Raising Funds
The costs comprise: Unrestricted Restricted Endowment 2017 2016 £ £ £ £ £
Staff Salaries 48,800 10,406 - 59,206 55,149 Support Costs Staff Expenses and Other Costs 972 564 - 1,536 1,921 Staff Training and Recruitment 852 88 - 940 1,736 Event Costs 7,710 806 - 8,516 10,790 Marketing and Promotion 443 8,178 - 8,621 14,773 Rent and Utilities 1,324 1,283 - 2,607 2,842 Postage, Printing and Stationery 2,280 387 - 2,667 1,141 IT Support 2,448 906 - 3,354 969 Bookkeeping and Accountancy Support 1,473 - - 1,473 1,663 Subscriptions 2,457 - - 2,457 2,088 Finance Charges and Insurance 59 - - 59 1,884 Depreciation 7,037 - - 7,037 1,365 Professional Fees 405 - - 405 3,191 Investment Manager's Fees 661 - 10,487 11,148 15,643
76,921 22,618 10,487 110,026 115,155
Trustees’ Report and Financial Statements 2016/17 28
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
6. Charitable Activities
Income Income from charitable activities comprises monies received from various donors and funders to be administered by the Foundation and paid out by way of grants, alongside voluntary donations for the same purpose.
Analysis by theme Expenditure Grants Direct 2017 2016 Awarded Support Costs Regular Grants Programmes £ £ £ £
Enhance physical and mental health, wellbeing and 113,482 25,876 139,359 256,823 safety Reduction of isolation and disadvantage 227,369 51,750 279,119 165,041 Improve education and life skills 82,533 18,819 101,352 103,323 Create stronger communities 67,058 15,290 82,348 52,288 Connect people with arts, culture, heritage and 25,792 5,881 31,673 6,574 environment
Sub total 516,234 117,616 633,851 584,049
Other Programmes Flood Relief grants to households 31,035 - 31,035 178,605 Localgiving.com 133,459 - 133,458 64,987 Raising Aspirations - 35,332 35,332 46,048 VCSE Strategic Coordination Project - 33,746 33,746 17,782 Somerset Social Enterprise Fund 10,000 29,531 39,531 30,662 Connecting and Convening - - - 8,153 Developing an Impact Framework - - - 7,898
Sub Total 174,493 98,609 273,102 354,135
Governance Costs (See page 31) - 26,886 26,886 21,734
Total 690,728 243,111 933,839 959,918
Trustees’ Report and Financial Statements 2016/17 29
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Grants: Geographical analysis grants from regular programmes
2017 2016 £ £
Mendip 140,220 93,899 Sedgemoor 39,879 90,018 South Somerset 99,450 102,319 Taunton Deane 164,385 121,059 West Somerset 37,684 78,566 Out of County 34,616 2,772 Total 516,234 488,633
Trustees’ Report and Financial Statements 2016/17 30
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Charitable Activities – detailed by Fund Unrestricted Restricted Endowment 2017 2016 £ £ £ £ £
Grant Making (incl.localgiving.com) - 690,728 - 690,728 711,461
Direct Support Costs Staff Salaries 76,000 11,640 - 87,640 108,956 Staff Expenses and Other Costs 3,206 2,255 - 5,461 14,376 Rent and Utilities 4,953 5,132 - 10,085 11,370 Marketing and Promotion 8,976 2,065 - 11,041 8,227 Postage, Printing and Stationery 1,914 4,218 - 6,132 4,564 Staff Training / Recruitment 661 353 - 1,014 - IT Support - 3,625 - 3,625 3,875 Bookkeeping and Accountancy Support 6,973 - - 6,973 6,843 Subscriptions 9,826 - - 9,826 8,352 Finance Charges and Insurance 577 - - 577 1,148 Professional Fees 1,784 73,147 - 74,931 53,556 Depreciation - - - - 5,456 114,870 102,435 - 217,305 226,723 Sub Total 114,870 793,163 - 908,033 938,184
Governance Costs Management 19,146 - - 19,146 15,434 Audit 6,660 - - 6,660 6,300 Sub Total 25,806 - - 25,806 21,734
Total Charitable Activities 140,676 793,163 - 933,839 959,918
7. Net Income
Net Income is stated after charging:
2017 2016 £ £ Auditor’s Remuneration: Audit of Statutory Financial Statements 6,660 6,300
Trustees’ Report and Financial Statements 2016/17 31
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
8. Trustees Expenses
None of the Trustees, or any persons connected with them, received any remuneration or were reimbursed any expenses relating to their role as Trustee. Clarke Willmott, a partner of which is a Trustee of the Foundation, received fees of £1,200 (2015/16: £2,340).
9. Staff Costs
Employee Information 2017 2016 £ £ Salaries 151,162 163,049 Employer's National Insurance Contributions 11,523 13,302 Employer's Pension Contributions 3,307 3,150 165,992 179,501
There were 4.5 employees during the year calculated on a full-time equivalent basis (2015/16: 5) and 5.4 on an average basis (2015/6:6.8). The key management personnel of the Foundation comprise the Chief Executive and Operations Director. The total employee benefits of the key management personnel of the Foundation were £80,874 (2015/16: £73,857). No employee earned more than £60,000 per annum (2015/16: None).
10. Investments
Fixed Asset Investments 2017 2016 £ £ Listed Investments 5,023,400 4,097,165 Cash Held in Investment Portfolio 232,788 71,309 5,256,188 4,168,474
2017 2016 Listed Investments are made up as follows:- £ £ Market Value brought forward 4,097,165 4,361,573 Acquisitions at Costs 1,839,697 761,429 Sale Proceeds (1,532,969) (821,987) Realised Gains 25,758 7,193 Unrealised Gains/(Losses) 593,749 (211,043) Market Value Carried Forward 5,023,400 4,097,165
Book Cost Carried Forward 5,466,550 3,905,414
Trustees’ Report and Financial Statements 2016/17 32
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
10. Investments (Continued)
The above investments comprise fixed interest securities and equities of which £4,251,963 (2015/16: £3,503,126) are UK Investments and £771,437 (2015/16: £594,039) relate to investments held outside the UK.
Additional realised gains of £15,079 (2015/16: £15,018) are shown in the Statement of Financial Activities which relate to foreign exchange settlements and cash distributions.
Shareholdings which individually represent more than 5% of the charity's investments are:
No. Of Shares Investments Market Value £ 137798 COIF Charities Investment Fund 1,925,153
11. Tangible Fixed Assets
Leasehold Furniture Property and and Improvements Equipment Total £ £ £ Cost At Beginning of the Year 160,324 9,028 169,352 Additions - 1,265 1,265 At the End of the Year 160,324 10,293 170,617
Depreciation At Beginning of the Year 44,891 7,704 52,595 Charge for the Year 6,414 623 7,037 At the End of the Year 51,305 8,327 59,632
Net Book Value At Beginning of the Year 115,433 1,324 116,757 At End of the Year 109,019 1,966 110,985
Trustees’ Report and Financial Statements 2016/17 33
Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
12. Debtors
2017 2016 £ £
Other Debtors 57,463 610,744 Loans – Amounts Falling Due Within One Year 8,638 8,113 Prepayments and Accrued Income 3,132 6,484 69,233 625,341
Loans – Amounts Falling due After More Than One Year 87,823 34,991
13. Creditors: Amounts falling due within one year
2017 2016 £ £ Other Creditors 33,744 32,683 Accruals and Deferred Income 32,950 60,742 Other Tax and Social Security 4,603 - 71,297 93,425
Trustees’ Report and Financial Statements 2016/17 34
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
14. Statement of Funds Balance Incoming Resources Unrealised/Realised Transfers Balance B/fwd Resources Expended Gains/(Losses) C/fwd £ £ £ £ £ £ Unrestricted Fund – General Funds 151,988 152,126 (210,963) (1,635) 69,818 161,334 Designated Funds: Building and Maintenance Fund 46,368 1,282 (654) 5,817 (278) 52,535 Yeoman House Fund 107,640 - (5,980) - - 101,660 Raising Aspirations Research Fund 2,755 - - - (2,732) 23 SYVN 2,100 - - - - 2,100 Total Designated Funds 158,863 1,282 (6,634) 5,817 (3,010) 156,318 Total Unrestricted Funds 310,851 153,408 (217,597) 4,182 66,808 317,652 Restricted Funds EDF Energy Community Fund - 20,000 (20,000) - - - Raising Aspirations 4,286 32,000 (35,332) - 2,732 3,686 Somerset Social Enterprise Delivery Fund 957,908 3,889 (39,531) - - 922,266 Taunton Youth Community Centre 262,333 - (69,295) - - 193,038 VCSE Strategic Co-coordinator 13,968 104,052 (33,746) - - 84,274 Other Restricted Funds Discretionary (11 funds) 91,656 131,661 (136,368) - - 86,949 Donor Advised (18 funds) 197,541 186,796 (171,020) - 50 213,367 Donor Directed (4 funds) 46,974 135,077 (133,624) 3,284 (1,083) 50,628 Field of Interest (7 funds) 39,835 42,903 (23,386) - - 59,352 Sub-total Restricted Funds 1,614,501 656,378 (662,302) 3,284 1,699 1,613,560
Trustees’ Report and Financial Statements 2016/17 35
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
14. Statement of Funds Balance Incoming Resources Unrealised/Realised Transfers Balance B/fwd Resources Expended Gains(Losses) C/fwd £ £ £ £ £ £ Endowment Income Funds Discretionary Funds (6 funds) 18,059 10,338 (13,779) - 735 15,353 Donor Advised (29 funds) 164,796 90,717 (87,815) - (11,823) 155,875 Field of Interest (12 Funds) 69,099 53,452 (51,885) - (8,143) 62,523 Total Endowment Income Funds 251,954 154,507 (153,479) - (19,231) 233,751 Total Restricted Funds 1,866,455 810,885 (815,781) 3,284 (17,532) 1,847,311
Endowment Funds Unrestricted Fund - General Funds 11,799 - 345 1,402 (199) 13,347
Trustees’ Report and Financial Statements 2016/17 36
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
14. Statement of Funds Balance Incoming Resources Unrealised/Realised Transfers Balance B/fwd Resources Expended Gains(Losses) C/fwd £ £ £ £ £ £ Restricted Funds (over £90,000) C&JP Fund CF 151,498 - 300 22,981 - 174,779 Churchstanton Community Fund CF 134,231 - 266 20,361 - 154,858 Clarke Willmott 118,759 - (97) 17,063 (926) 134,799 David Medlock CF 201,379 - 399 30,547 - 232,325 David Price GG CF 244,237 - 54 35,596 (1,191) 278,696 Donald Lake Memorial Fund GG 110,764 - (540) 14,239 (2,103) 122,360 Eagle House GG 538,362 - (2,728) 72,005 (10,637) 597,002 Exmoor Community Trust CF 105,385 - 209 15,985 - 121,579 Glemsford Fund CF 156,927 189,594 (141) 27,725 (280) 373,825 Grave Family Fund GG CF 99,023 - (426) 13,222 (1,735) 110,084 McGreevy Charitable Trust GG 112,678 - (557) 14,692 (2,171) 124,642 Millennium Fund CF 175,016 - 347 26,548 - 201,911 Huish’s Exhibition Fund - 94,609 (330) 3,338 (282) 97,335 Ringham Fund 78,626 - 156 11,927 - 90,709 S’set Fund for Deaf and Hard of Hearing CF 196,372 - 389 29,787 - 226,548 Somerset Grassroots Grants Endowment GG 158,889 - (815) 21,508 (3,177) 176,405 Somerset Masonic Fund GG 215,800 - (1,438) 29,720 (1,517) 242,565 Summerfield & Tauntfield GG CF 112,120 - (481) 14,689 (1,951) 124,377
Trustees’ Report and Financial Statements 2016/17 37
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
14. Statement of Funds Balance Incoming Resources Unrealised/Realised Transfers Balance B/fwd Resources Expended Gains/(Losses) C/fwd £ £ £ £ £ £
T & PJ (Milborne Port) 289,760 (5,000) (1,795) 37,412 (6,790) 313,587 WCS Pickford Trust 176,835 - (856) 22,730 (3,357) 195,352 Other Endowment Funds Discretionary (5 Funds) 85,994 - (414) 11,062 (1,533) 95,109
Donor Advised (18 Funds) 658,363 - (2,226) 88,138 (10,575) 733,700 Field of Interest (4 Funds) 101,018 - (108) 14,285 (852) 114,343
Total Endowment Funds 4,233,835 279,203 (10,487) 596,962 (49,276) 5,050,237 Total Funds 6,411,141 1,243,496 (1,043,865) 604,428 - 7,215,200
Trustees’ Report and Financial Statements 2016/17 38
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
Designated Funds
Building and Maintenance Fund - for the upkeep and maintenance of Yeoman House
SYVN (Somerset Youth Volunteer Network) - to support youth volunteers in Somerset
Raising Aspirations Research Fund – to fund research in support of the Raising Aspirations mentoring programme
Yeoman House - Funds donated to purchase Yeoman House. The funds have been fully spent on acquiring the leasehold property, Yeoman House. The fund balance will be reduced by depreciation over the life of the lease.
Restricted Funds & Endowment Funds
Local Giving - Funds received through localgiving.com
VCSE Strategic Co-ordinator – Supporting the work of the VCSE coordinator for Somerset
All other restricted and endowment funds that support our grants programmes are listed with brief descriptions on our website: http://www.somersetcf.org.uk/about-us/current-funds
15. Analysis of Net Assets between Funds
Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £
Investments 90,017 65,067 5,101,104 5,256,188 Fixed Assets 110,985 - - 110,985 Current Assets/(Liabilities) 116,650 1,782,244 (50,867) 1,848,027 317,652 1,847,311 5,050,237 7,215,200
Trustees’ Report and Financial Statements 2016/17 39
Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
16. Financial Commitments
Capital There were no capital commitments in respect of specific charitable projects or the purchase of tangible fixed assets as at 31 March 2017 (2015/16: £Nil).
Operating Leases At 31 March 2017, the Foundation had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:
2017 2016 £ £ Land and Buildings Expiring After 5 Years 42,024 43,200
Office Equipment Expiring Within 1 Year 596 23 Within 2 - 5 Years 1,892 4,453 2,488 4,476
17. Transfers
Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ Income Fund 46,692 (46,692) - - Other 20,116 29,160 (49,276) - 66,808 (17,532) (49,276) -
Income Fund - relates to fees applied to the restricted income funds to contribute to the unrestricted running costs of the charity, in line with the terms of the funds.
Other - relates to the transfer of endowment fund balances to unrestricted funds from savings in investment costs in order to support the Foundation’s Development.
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Trustees’ Report Somerset Community Foundation
Notes to the Financial Statements for the Year Ended 31 March 2017
18. Reconciliation of Net (Expenditure)/Income to Net Cash Flow From Operating Activities 2017 2016 £ £
Net Income for the Reporting Period (as per the Statement of Financial Activities) 804,059 149,700
Adjustments for: Depreciation Charges 7,037 6,821 (Gains)/Losses on Investments (619,506) 203,850 Dividends and Interest from Investments (143,638) (142,269) Decrease/(Increase) in Debtors 503,276 (534,372) (Decrease) in Creditors (22,128) (49,965) Net Cash Provided by/ (Used in) by Operating Activities 529,100 (366,235)
Analysis of Cash and Cash Equivalents Cash in Hand 1,762,268 1,559,003 Total Cash and Cash Equivalents 1,762,268 1,559,003
19. Grants payable
2017 2016 £ £ Organisations 514,894 474,713 Individuals 50,640 175,033 Local Giving 133,458 64,987 Returned Grants (8,265) (3,272) Total Grants Payable 690,727 711,461
Grants awarded £
1st Wellington Scouts 4,892 Actiontrack 23,439 Active and In Touch 2,500 Active Living Friendship Group 1,837 Age UK Somerset 16,000 All Saints C of E Dulverton 1,000 Ashcott Village Hall 1,000 Ashill Village Hall Committee 500 Ashwick and Oakhill Playgroup 500
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Trustees’ Report Somerset Community Foundation
Autism Community Network CIC – Autism Somerset (ACNCIC) 3,950 Avalon Archery Club 500 Axbridge Saxon Junior Football Club 500 Back on Track 6,500 Blackdown District Scouts, Tangier Scout & Guide Centre 11,000 Blackdown Support Group 1,000 Blackdown Youth Club 5,000 Blandford Opportunity Group 3,850 Bloodwise 100 Brainwave 100 Bridgwater Carnival 1,000 Bridgwater Half Marathon 500 Bridgwater - La Ciotat Link Society 225 Burnham & Berrow Golf Club 1,380 Burnham & Highbridge Sea Cadet Unit 400 Burnham United Junior Football Club 500 Burtle Village Hall 450 Care and Share Time 650 CBO Community Bus 350 Centre for Outdoor Activity & Community Hub (COACH) 3,220 Charterhouse Exoplanet Project 200 Cheddar Challenger 500 Cheddar Valley Plus 3,897 Cheddon & West Monkton Film Club 1,000 Children's Hospice South West 100 Children’s World 4,000 Chilton Trinity Parochial Council 250 Churchinford & District Village Hall 1,000 Churchstanton Public Open Space Management Group 1,800 Citizens Advice Mendip 4,750 Citizens Advice South Somerset 9,849 Citizens Advice Taunton & District 2,850 Coleford Revival Group 500 Community Archaeology on the Mendip Plateau (CAMP) 1,000 Community Catalysts 10,000 Community Council for Somerset 11,000 Compass Disability Services 10,000 Crewkerne Rugby Football Club 500 Crowcombe Pre-School 500 Crusaders' Friendship Group 500 Divoky Riding School 500 Dorchester Opportunity Group 3,850
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Trustees’ Report Somerset Community Foundation
Dulverton and Brushford Pastimes Club 500 Dulverton Cricket Club 500 Edventure Frome CIC 5,000 Elim Connect Centre 335 Escape Support Group 4,600 Evercreech Friendship Club 150 Exford Cricket Club 500 Exmoor Search and Rescue 1,000 FastRacket (part of Shepton Mallet Bowls and Tennis Club) 1,000 FOBSA (Brymore Academy PTA) 400 Forget-Me-Not Nursery 500 Forum 21 11,400 Glastonbury Christmas Lunch 400 GoCreate Taunton CIC for Taunton Live 2,000 Golden Oldies 660 Good Fellowship Club 500 Growing Space 2,000 Hamdon Youth Group 300 Heads Up 2,285 Healeys Amenities 200 Healthy Babies UK 1,000 Henhayes Centre 500 Highbridge & Burnham-On-Sea Carnival Ltd 250 Hill House Christian Centre 500 Home Start Bridgwater 3,000 Home Start West Somerset 2,500 Horseshoes and Handprints 2,620 In Charley's Memory 1,000 In the Mix Youth Project 250 Jack in the Box Toy Library 1,950 Jackdaws Music Education Trust 600 Jubilee Hall Ditcheat 1,100 Key4Life 3,000 Knightstone Housing Association 2,000 Kyo Kai Judo Club 100 Langport & Huish Youth Group 1,043 Langport Community Christmas 150 Leigh on Mendip Recreation Field Management 1,500 Leigh on Mendip with Downhead PCC 3,500 Living Paintings 200 Love Musgrove 1,000 Lower Lakes CIO 1,321
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Trustees’ Report Somerset Community Foundation
Lucy Campbell Trust / Holton Village Hall 200 Macmillan Cancer Support 50 Mark Day Centre 100 Mean Feet Dance Ltd 1,525 Mencap Taunton 1,000 Mendip Caving Group 750 Mendip Community Credit Union 1,525 Mendip Society 900 Mendip YMCA 8,200 MIND in Taunton & West Somerset 4,175 Minehead Cricket Club 500 Minehead Eye Youth and Community Centre 2,480 Monks Yard 500 Myaware 500 NFW Friends of the Village Hall 250 North Taunton Partnership 4,665 Oake and District Village Hall and Recreation Ground 2,000 On Your Bike 6,160 Openstorytellers Ltd 2,000 Over Stowey Village Hall and Recreation Ground 500 PACE (Personal Achievements Creative Experiences) 2,500 Parochial Church Council of Ditcheat 750 PCC Churchstanton 750 Peers for Creative Outlets 450 PROMISEworks 14,965 Quartet Community Foundation 1,500 Read Easy Taunton North group 2,500 Red Brick Building 3,900 Reminiscence Learning 2,700 Revitalise Respite Holidays 1,416 Rotary Club of Frome Selwood 3,150 Rotary Club of Langport & Somerton 25 Royal Brompton and Harefield NHS Foundation Trust 26,000 Royal Holloway University of London 1,000 Samaritans of Taunton and Somerset 1,000 Shepton Mallet Parkrun 2,250 Somerset Community Care Matters 895 Somerset Parent Carer Forum CIC Ltd 3,825 Somerset Playing Fields' Association 750 Somerset Rural Youth Project 3,000 South Barrow PCC 20,000 South Petherton Cricket Club 500
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Trustees’ Report Somerset Community Foundation
South Somerset Community Accessible Transport 4,500 South Somerset MIND 6,510 SPARK Somerset 3,000 Spaxton Junior Football Club 500 St Francis Social Club for Visually impaired people 500 St Francis Youth Club 2,500 St. Peter`s Church and Community Hall 500 Staplegrove Scout Group 1,000 Stawell & Sutton Mallet Village Hall 250 Stogumber Festival 600 Stoke St Michael Community Events Group 1,142 Streetspace Youth Project 3,654 Superact! 1,000 SWEDA 7,500 Tacchi-Morris Arts Centre 3,000 Taunton Baptist Church 5,000 Taunton Bowling Club 500 Taunton Deane Borough Council 4,250 Taunton Dementia Action Alliance C/o Creative Innovation Centre CIC 250 Taunton Foodbank 1,000 Taunton Hard of Hearing Club 500 Taunton Opportunity Group 3,850 Taunton Rowing Club 1,000 Taunton Theatre Association Ltd 10,000 Taunton YMCA 500 The Balsam Centre 4,000 The Bridgwater SNAP Group 2,000 The Charltons Parish Council 400 The Dorothy House Foundation Ltd 5,000 The Orchard Social Club 750 The Wellington Basins Volunteer Group 650 The Willow Set Preschool and Sun Up Sun Down Club 1,000 Tone Leisure (South West) Ltd 9,962 Tor Netball Club 500 Trident Youth and Community Centre 730 TS5C 2,074 Tŷ Hafan 50 Ups and Downs South West 6,500 Visually Impaired Bowls England 1,500 Wanstrow Village Hall 383 Watchet Youth Club 2,000 We Hear You 3,729
Trustees’ Report and Financial Statements 2016/17 45
Trustees’ Report Somerset Community Foundation
Wedmore Mini Day Centre 150 Wellington Fox’s Hockey Club 500 Wellington RFC 500 Wellington Street Pastors 1,000 Wells and Mendip Astronomers 150 Wells Art Contemporary 134 Wells Food Network 1,500 Wells Vineyard 201 Wembdon VC School PTA 50 West Buckland Friendship Club 500 West Hatch Scout Group 1,750 West of England MS Therapy Centre 100 West Somerset Advice Bureau 6,949 West Somerset Community Land Trust 2,480 Westbury Sub Mendip Parish Council 1,280 Westfield United Reformed Church 3,762 Westland Sports Cricket Club 500 Westonzoyland PCC 250 WHERE 3,500 Willowdown Primary Academy PTFA 100 Wimbleball Sailability 1,000 Wincanton Live at Home 6,288 Yeast Scrapstore Ltd 700 Yeovil & Sherborne Hockey Club 500 Yeovil Community Church Trust 3,000 Yeovil Freewheelers EVS 4,825 Yeovil Men's Shed 1,000 Yeovil Men's Shed (c/o South Somerset Mind) 900 Yeovil Opportunity Group 3,850 Yeovil Town Community Sports Trust Ltd 4,762 Young People Frome 1,970 Sub Total 514,894
Solutions for an Aging Society 1,500 Somerset Flood Relief Fund Grants to Individuals 31,035 Eagle House Grants to Individuals 15,280 Norah Cooke Hurle Grants to Individuals 2,825 Local Giving Grants to Groups 133,459 Returned Grants (8,265) Sub Total 175,834 Total 690,728
Trustees’ Report and Financial Statements 2016/17 46